N.J. Admin. Code § 17:19-2.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:19-2.9 - Bonding capacity

(a) A firm proposing to submit bids on a public work project, which requires a performance bond or a payment bond, or both, shall submit as part of its DPMC-27 a certified statement of the firm's bonding capacity. The statement shall be contained on the standardized form entitled "Surety Affidavit," provided by the DPMC, and shall be from a surety authorized to issue bid bonds and performance and payment bonds in the State.

(b) If the aggregate rating is equal to or greater than 85 percent of the firm's bonding capacity, and if the surety attesting to the firm's bonding capacity is listed in Treasury Circular 570 with a high rating as defined in 2A:44-143, the firm shall be issued an aggregate rating equal to its bonding capacity.

(c) A firm, which does not provide a statement of bonding capacity from an authorized surety shall receive an aggregate rating of not more than $ 200,000 and shall not be eligible to bid on any projects for which a bond is necessary, but may be eligible to bid on any project for which a bond is not required, within the firm's aggregate rating limit. In no event shall a firm's aggregate rating exceed the firm's bonding capacity, except, firms with a bonding capacity of $ 200,000,000, and demonstrating a net working capital calculation of $ 200,000,000 or more, shall be issued an unlimited aggregate rating.

N.J. Admin. Code § 17:19-2.9

Amended by R.2000 d.76, effective 2/22/2000.
See: 31 N.J.R. 4237(a), 32 N.J.R. 712(a).
In (a), substituted a reference to the following factors for a reference to three factors in the introductory paragraph, and added 4 and 5; in (b), inserted "exceeding 90 days" at the end of 3, deleted a reference to officers, employees, etc. in 8, and added 9 and 10; and in (d), substituted "69.9 percent to 65 percent" for "69.9 percent or lower" in the table in 2, substituted a reference to the DPMC for a reference to the DBC in 3, substituted a reference to $ 200,000 for a reference to $ 100,000 in 4, and substituted a reference to 65 percent for a reference to 0.25 in 5.
Amended by R.2008 d.363, effective 12/1/2008.
See: 40 N.J.R. 3959(a), 40 N.J.R. 6825(a).
In (a), inserted a comma following "project" and inserted "the" preceding "DPMC"; and in (c), inserted a comma following "A firm" and substituted ", firms with a bonding capacity of $ 200,000,000, and demonstrating a net working capital calculation of $ 200,000,000 or more," for "that if the aggregate rating is equal to or greater than $ 200,000,000, the firm".